United State real estate investment information for the global investor. Education is your best defense against poor business practices and lack of disclosure.

The United States welcomes foreign real estate and business investment with few limited exceptions designed to protect national security.

Foreign investors have access to domestic credit based on creditworthiness. There are no foreign investment incentives per se at the national level (i.e., incentives not available to domestic investors). Many of the states offer reductions on states taxes, credit, and other incentives for foreign or domestic investment that involves job creation. The information related to incentives at the State level is not followed by the federal government in any systematic way. State level incentives are offered on a national treatment basis.

The real estate industry is highly regulated in the United States. Only a real estate broker and broker supervised agents are licensed to advise on matters affecting the value of real estate. An attorney is licensed to advise on the legal aspects of a transaction and a Certified Public Accountant is licensed to advise on the tax consequences of a transaction. A successful USA real estate investment will normally include the use of all three professionals when considering a real estate investment.

U.S. business firms enjoy considerably greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to entry in their rivals' home markets than the barriers to entry of foreign firms in US markets.

Real Estate Tips For The Times

Heads up: Tough call for buyers at this point. USA real estate has enjoyed several years of record appreciation - in large part fueled by low interest rates and record new construction. The USA economy will soon be hard pressed to absorb the rising interest rates, increased energy costs, the Iraq War and Hurricane Katrina.

Defense: The best defense is to take some simple steps to avoid a forced or distressed sale. Convert all variable rate loans to fixed rate loans. Now is the time to carefully review your investment portfolio for potential negative cash flow problems from income properties - increase your reserves. If you are highly leveraged, you might consider selling while there are still buyers out there and somewhat affordable interest rates. If you are not forced to sell, a temporary real estate slowdown is not real pertinent.

Tips: By fact and nature, buyers and sellers have opposing objectives. Extreme caution is advised when dealing direct with an owner or the real estate office and agent which is representing the owner. Carefully consider the motivation involved. What do you believe happens to full disclosure?

Resources

Foreign investment information from the U.S. Department of Treasury.

United States Economic information from the U.S. Department of Labor.

United States economic facts from the Central Intelligence Agency.

The Federal Reserve is the Central Bank for the United States.

United States real estate investment information for the global real estate investor is provided by Bruce Woodworth.